Opposition from US banking associations towards granting trust bank charters to Circle, Fidelity, and Ripple
In the world of digital currency, Circle, a prominent cryptocurrency firm, has taken a significant step by formally applying for a national trust bank charter from the Office of the Comptroller of the Currency (OCC). The application, submitted in late June 2025, seeks to establish "First National Digital Currency Bank, N.A."
This move aims to create a federally regulated trust institution that would allow Circle to manage its USDC stablecoin reserves directly under OCC supervision, rather than relying on third-party custodians. If approved, this could help Circle strengthen USDC infrastructure, meet anticipated requirements under the proposed GENIUS Act stablecoin legislation, and offer custody services to institutional clients.
However, the applications by Fidelity Digital Assets, Protego Trust, and Ripple remain shrouded in mystery, with no publicly reported updates on their similar OCC charter applications. The focus in the sources is primarily on Circle's application.
The application process has not been without controversy. US banking associations and other industry voices have raised concerns about transparency and the potential for these crypto firm bank charters to be used as a "backdoor" means to obtain national bank status, thereby circumventing traditional regulatory scrutiny. However, no direct statements from the OCC responding to these concerns or updates on how the review process incorporates these objections were found in the search results.
The regulatory landscape for stablecoin issuers is evolving, with the proposed GENIUS Act shaping oversight and approval processes for national trust bank charters and stablecoin activities. This dynamic may further incentivize firms like Circle to pursue national trust bank charters as a means of achieving regulatory clarity and operational scale within the U.S. financial system.
As the review process unfolds, the OCC applications for the aforementioned crypto and stablecoin firms are under a public comment period. The American Bankers Association, along with four other US banking associations, have raised concerns about the lack of disclosed information in the applications and have requested the OCC to delay the process until the applicants release enough information about their intended business plans and other aspects of the applications.
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[1] Ledger Insights, "Circle and Ripple Apply for National Trust Bank Charters," [URL] [2] CoinDesk, "Circle Applies for National Trust Bank Charter," [URL] [3] American Banker, "Circle Seeks National Trust Bank Charter," [URL] [4] Federal Reserve Bank of St. Louis, "Regulatory Landscape for Stablecoins," [URL]
- The news of Circle's application for a national trust bank charter from the Office of the Comptroller of the Currency (OCC) has been widely reported, with sources such as Ledger Insights, CoinDesk, and American Banker covering the story.
- While Circle's application has been the focus, similar charter applications by Fidelity Digital Assets, Protego Trust, and Ripple remain shrouded in mystery, with no publicly reported updates on their applications.
- The application process for these national trust bank charters is not without controversy, as US banking associations, including the American Bankers Association, have raised concerns about transparency and the potential for these crypto firms to circumvent traditional regulatory scrutiny.
- As the review process unfolds, the OCC is under pressure to disclose more information about the applications, with the American Bankers Association and other banking associations requesting a delay in the process until the applicants release enough information about their business plans and other aspects of the applications.
